While the world’s bankers, Central Bankers, and Governments wrestle with a financial crisis so large it has threatened – if it is not contained – to become a systemic crisis of capitalism, the rest of us watch and wait, and wonder what the effects will be.
We recognise the need for action, but we note the irony of vast public funds being made available to rescue the same financial capitalists who habitually advocate the for the ‘reform’ of policy to take away safety nets for the poor and to expose ordinary people to the disciplines of “the market”.
Whether or not the latest rescue package succeeds, there will be economic aftershocks, and we should be wary. In her book The Shock Doctrine: The Rise of Disaster Capitalism, Naomi Klein documents how moments of crisis have been exploited since the 1970s to push unpopular – and otherwise politically impossible – ‘free market’ policies (more accurately, policies favouring the interests of corporate – especially U.S. – capitalism) onto shocked and disoriented publics.
The rest of the world should not expect an Obama Presidency (if it comes to pass) to make much difference to this – it has been a behaviour persistent through changing U.S. Administrations over the decades.